April 26, 2023
Orders for US Business Equipment Decline by More Than Forecast
Orders placed with US factories for business equipment fell in March by more than expected, suggesting higher borrowing costs and a cloudy economic outlook are restraining capital investment.
The value of core capital goods orders, a proxy for investment in equipment that excludes aircraft and military hardware, decreased 0.4% last month after a downwardly revised 0.7% drop in February, Commerce Department figures showed Wednesday. The data aren’t adjusted for inflation.
ECB Has No Choice But to Raise Rates Further, Vujcic Says
The European Central Bank must lift borrowing costs further because inflation pressures remain too high, according to Governing Council member Boris Vujcic.
“Inflation is falling, but core inflation is stubbornly high,” he told Slovenia’s Delo newspaper in comments published Wednesday. “We have no choice but to continue raising interest rates. We’ll have to do this until we see a change in the trend.”
China’s Consumer Recovery Under Scrutiny as Economy Rebounds
China’s high frequency indicators show the economy continued to expand in April, although the strength of the recovery is under scrutiny amid an uncertain global environment and relatively high unemployment.
Bloomberg’s aggregate index of eight early indicators rose one level to 5 in April, largely due to a jump in car and home sales from a year earlier. The comparisons with last year overstate the strength in consumption, though, since Shanghai was in lockdown then, which resulted in a slump in economic activity at the time.
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